U.S. to offer Georgia $1 billion in aid

The Bush administration plans to announce a $1 billion package of aid to help rebuild Georgia after its rout by Russian forces last month, an administration official said on Wednesday, as Vice President Dick Cheney arrived in the region to signal support for Georgia and other countries neighboring Russia.

The aid - along with Cheney's visit - are sure to increase tensions with Russia, whose leaders have accused the United States of stoking the conflict with Georgia over its two separatist regions, by providing weapons and training to the Georgians. President Dmitri Medvedev and Prime Minister Vladimir Putin have also complained that humanitarian supplies delivered by the U.S. Navy and Air Force since Russian forces routed Georgian forces and occupied parts of the country were a disguise for delivering new weapons.

Administration officials have dismissed those accusations as baseless.

The aid package, which is expected to include money for rebuilding Georgia's infrastructure and its economy, is scheduled to be detailed in Washington later Wednesday by Secretary of State Condoleezza Rive, the official said. It is not clear whether the package will include any direct military support, which officials have acknowledged they are considering. The aid package reflects an intensification of the administration's support for Georgia, though President George W. Bush and his senior advisers have yet to settle on any punitive actions against Russia.

Cheney arrived Wednesday in Azerbaijan on the first of three stops in the region, which the Russians consider their "near abroad," in what one of his aides last week described as an effort to bolster countries in the face of their more assertive neighbor. Cheney is scheduled to visit Georgia on Thursday, followed by Ukraine.

 

While Cheney's plans to visit Azerbaijan and Georgia were made before Russia's military operation in Georgia, the trip took on added significance following the conflict, which began on the night of Aug. 7 when Georgian forces tried to seize control of South Ossetia, only to be driven back when Russian forces poured into the country.

Although a cease-fire ended the fighting, Russian forces have still not withdrawn from parts of Georgian territory near South Ossetia and another breakaway region, Abkhazia. Russia last week recognized both as independent countries, a move that has failed to win any international backing.

Azerbaijan, like Georgia, is a former Soviet republic that has sought closer ties to the West and the United States, and it is considered a vital crossroads for oil and gas from the Caspian Sea.

Underscoring the point, Cheney's first meetings here in Baku were with representatives of two international oil companies - William Schrader of BP Azerbaijan and Robert Satmalchi of Chevron - according to a spokeswoman, Megan Mitchell. She said they discussed "their assessments of the energy situation in Azerbaijan and the broader Caspian region, especially in light of Russia's recent military actions in Georgia."